Digital Dominance: India Leads as Ad Revenue Goes Virtual

Digital advertising is set to dominate global ad revenue by 2029, with India already seeing digital media outpace television as the top segment in its media industry. According to ICICI Securities, this shift is driven by evolving consumer behavior and preferences, alongside the effectiveness of digital platforms.

A new report from ICICI Securities indicates that digital advertising is on trajectory to comprise nearly 80% of global ad revenue by 2029, signifying a major industry shift towards electronic formats. In India, digital media has already surpassed television, becoming the media segment with the highest growth.

The report underscores that the rise of digital media is more than a fleeting trend; it embodies deeper transformations in consumer preferences, advertiser priorities, and revenue models employed by platforms. In 2024, digital ad formats accounted for approximately 72% of worldwide ad revenue, a figure forecasted to climb to around 80% by 2029.

In India, digital media surged more than 30% annually in 2025, marking it as the fastest-expanding segment of India's media and entertainment sector. Digital advertising plays a pivotal role, increasing its market share to about 63% from 56% in just one year, with revenues nearing the Rs 1 trillion threshold.

The broader Indian advertising market experienced a 13.5% rise to Rs 1.5 trillion in 2025, outpacing the media sector's growth rate of 9% and surpassing the first GDP per capita growth rate for three years. The report attributes this to performance marketing, which allows targeted, measurable engagement with consumers, fueling digital's rising importance.

Globally, sectors like retail search advertising and in-game advertising are poised for pronounced growth, expected to increase their advertising shares substantially. In India, commerce-linked digital advertising, led by e-commerce and point-of-sale promotions, grew by 50% in 2025, equating to 85% of TV ad revenues. This marks a significant structural shift in advertising, increasingly dominated by digital channels. (ANI)